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Wednesday, May 13, 2015

Malaysia is not going bankrupt

By Salleh Said Keruak

Greece is struggling to find the money to pay its RM3 billion loan to the IMF that is now due. Even if it can find that money in such short notice that still does not solve the problem because next month another RM10.5 billion is due.

Hence Greece needs almost RM15 billion over the next couple of weeks.

In July, Greece needs another RM35 billion and in August another RM28 billion. That means in three months Greece has to fork out almost RM90 billion, money that it does not have.

In such a situation the alternative would be to roll over the debt for another ten years but this will cost Greece another 12% and would bankrupt the country even further.

In short, it is impossible to save the country that once ruled half the world.

Greece’s public debt ratio is 175%. However, if you think that this is bad, Japan’s is worse at 228%. Italy is at number five at 134%. Singapore at number 11 at 107%. France is 96%, Canada 93%, the UK 87%, Austria 80%, Germany 75%, the US 71%, and Malaysia down at number 63 on the list at just 54%.

The opposition keeps saying that Malaysia is going bankrupt. And yet Malaysia still attracts foreign investments. The problem is the opposition is just sensationalising the issue without supporting what they say with facts and statistics.

While we can agree that we need an opposition, it has to be a responsible opposition that does not mislead the public and spread untruths. Malaysia’s opposition does not appear to be concerned about the truth but only about running down the government even if it has to tell half the story.